Seven firms including JD, Citic Securities and Industrial Bank will take a 24.52 percent stake, while management, staff and other investors will also be allowed shares in the firm, whose parent is the China National Gold Group Corp.

China has pledged to allow private capital to invest in government-run enterprises as part of a “mixed ownership” reform programme aimed at rejuvenating the country’s bloated and inefficient state sector.

Telecoms group China Unicom last week announced a $11.7 billion ownership reform plan which was later mired in confusion about fundraising details. ($1 = 6.6596 Chinese yuan renminbi) (Reporting by Brenda Goh; Additional Reporting by Cate Cadell in BEIJING; Editing by Christian Schmollinger)